The ANC wants your pension...

So, what happens once the ANC has milked the money cow dry? Will they sell their posh cars and houses? Will they build factories and create industries to employ the poor people of South Africa? Will they get tough on corruption and stop giving out tenders to their brothers and sisters who charge 10 times the going rate?

Tonight eNews reported that the Tswane government paid R368 000 for 16m of VibaCrete walls somewhere in the Pretoria CBD. That comes to about R23 000 per running meter. I fixed my friend's wall a few years ago for about R2000 when a tree fell on it. It was about 5 running meters. That comes to R400 per running meter. And I still made a profit.

I never liked Eugene Terreblanche, but I watched his last interview. He said something which has been stuck in my mind ever since. He said, in Afrikaans: "Jy kan kan 'n koei DOOD melk..." (You can milk a cow dead...)

Jacob Zuma told his delegation today that the economy is still in the hands of white men. Damn right it is. If I got a company to quote for a small job worth R10 000 and I got a quote for R368 000, I probably wouldn't employ that guy. But if you're using somebody else's tax money...

The ANC is now moving in for the kill... They will be discussing ways to force pension funds to invest a certain portion of their portfolios in state-run development institutions.

Basically, the people who have been investing month after month for years at Old Mutual or Sanlam will be paying for their infrastructure development scams. Now that squandering our tax money is becoming too easy, they want to get in on the investment action too...

Leave our pensions alone...

Various private sector organizations in South Africa have
criticized the ANC’s plans to force pension funds to invest in state
development projects even before the proposal has been dicussed.

The ANC was quiet about the issue for a long time, but the
ruling party will be discussing the proposal again this week in Midrand. The issue
should be finalised at the ANC’s election conference in December.

The ANC’s idea is to force pension funds to invest a certain
portion of their portfolios in “development”, but they’ve received a wave of criticism.

The minister of economic development, Ebrahim Patel,
recently stated that it would be beneficial for pension funds to invest more in
state development, because it would stimulate economic growth.

The question remains whether development projects are
profitable enough and whether the risks would be justified.

Role players in the financial industry are of the opinion
that the government can’t do what they please with funds that are invested by
the sector on behalf of clients.

Leon Campher, CEO of the association for savings and investment
SA (ASISA), says that the estimated R3200 billion the government is planning to
spend on infrastructure development could possibly be partially funded by
savings, but that other savings channels should be created for that purpose.

Investment in development projects will only happen if the environment
and returns on investment are attractive enough.

Adri Messerschmidt, Senior Policy Advisor of ASISA, says
that the government is attempting to break down open doors with forced
investments in state institutions and development agencies.

“The need for investment in infrastructure is huge, but the
government needs to create an environment where it would be possible and lay
down clear regulations to show investors why it would be beneficial.”

The financing of infrastructure and development institutions
is a sensitive subject in many other countries according to Messerschmidt. Less
than 1% of pension fund assets are invested in development institutions
worldwide.

Sanlam economist, Jac Laubscher, says that there is no
reason why people who have savings should subsidise the government. By forcing
financial institutions to invest in infrastructure development, the government
will be transforming them into “development institutions”, which isn’t why they
are there.

Prescribed investments for pension funds in infrastructure
and development institutions would not increase capital in the economy,
Laubsher says. It would just decrease profits on savings and increase
opportunity costs on investments.

He says that the government should stick to their mandate
and leave the private sector to do its job. “The government is responsible for
the development of the country through its policies, while the private sector
needs to implement government’s policies due to the state’s incompetence.”

Ismail Momoniat, head of taxation and financial sector
policies of the National Treasurer, stated at the annual congress of ASISA last
week that government should rather concentrate on the underlying issues that
are causing problems.

Andrew Canter, head of investments at Futuregrowth, says
that government does not need money from financial institutions to fund
infrastructure development.

He says that the R3200 billion that is needed to invest in
infrastructure in the next ten years according to the government is only an
estimation and that 78% of the amount represents spending on electricity and
transport.

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If you live in the la-la land that SAB tries to present in ads and 7de Laan desperately attempts to portray South Africa as, you probably won't like this blog.

I AM NOT A RACIST. SO DON'T PULL THE RACE CARD WHEN YOU CAN'T DEBATE INTELLIGENTLY.

All people ARE NOT CREATED EQUAL. I have no ball skills, for instance, but I can play a mean guitar riff.

Some people are inferior to other people. I'm not a rocket scientist, so as far as intelligence and income goes, I'm inferior to a rocket scientist. That doesn't mean that I'll allow a rocket scientist to treat me like shit. And it doesn't give him the right to treat me like shit.

I deal with a lot of black people every day. Most are nice, some are DICKHEADS. I deal with a lot of white people every day. Most are nice, some are DICKHEADS.

That should sum it up. It doesn't matter what color your skin is, if you are a DICKHEAD, I don't like you.

If you are uncultured, you like to rape and torture people, hurt animals, if you litter, jump queues, stand too close to me in a queue, talk loudly too close to me, if you drive like an idiot. I DON'T LIKE YOU. It doesn't matter if you're black, white, pink, green or orange. If your culture (or lack thereof) irritates me, I don't like you. I also don't like the ANC.

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